The Union Pacific control perceived in the aggression of the two northern lines a menace to its northwestern and Pacific coast connections. The Union Pacific leader, E. H. Harriman, resorted to an unexpected coup. He attempted to purchase the Northern Pacific, Burlington and all. A mysterious demand, set Northern Pacific shares soaring. The stock reached $1,000 a share and none was obtainable. Panic arose; bankers and brokers faced ruin. The two sides now declared a truce. The Northern Securities Company was created, with a capital approaching a billion dollars, to take over the Burlington, Northern Pacific, and Great Northern stocks. [Illustration: Portrait.] E. H. Harriman. The States of Minnesota and Washington, unable in their own courts to thwart this plan, sought the intervention of the United States Supreme Court. Their suit was vain till the Administration came to the rescue. At the instance of the Attorney-General, an injunction issued from the high court named forbidding the Securities Company to receive the control of the roads, and the holders of the railroad stocks involved to give it over. It was observed, however, that at the very time of the above proceedings the Southern Railways' power obtained control of the Louisville and Nashville without jar or judicial obstruction. While general, the process of confederation was specially conspicuous in the iron and steel trade. In rapid succession the National Steel Company, the American Sheet Steel Company, and the American Tin Plate Company were each made up of numerous smaller plants. Each of these corporations, with a capital from $12,000,000 to $40,000,000, owned the mines, the ships, and the railways for hauling its products, the mills for manufacturing, and the agencies for sale. Through the efforts of John W. Gates numerous wire and nail works were combined into the American Steel and Wire Company. The Federal Steel Company, the American Bridge Company, the Republic Iron and Steel Company, huge and complete, were dictators each in its field. [Illustration: Portrait.] John W. Gates. The Carnegie Steel Company long remained independent. Determined not to enter a "combine," Andrew Carnegie sought to fortify his position. He obtained a fleet of ships upon the lakes, purchased mines, undertook to construct tube works at Conneaut, Ohio, and planned for railroads. A battle of the giants, with loss and possible ruin for one side or the other, impended. Carnegie was finally willing to sell. Hence, the United States Steel Corporation capitalized for a billion dollars. Carnegie and his partners were said to receive about $300,000,000 in bonds of the new corporation, while the other trusts and the promoters absorbed the stock for their properties and services. The underwriting syndicate probably realized $25,000,000. [Illustration: Portrait.] Copyright. 1902, by Rockwood. N. Y. Andrew Carnegie.